1. AIDS TO TRADE (BANKS)AIDS TO TRADE (BANKS)
NAME: SURJIT KAUR NOORINAME: SURJIT KAUR NOORI
ROLL NO. 43ROLL NO. 43
SUBJECT : ORGANISATION OF COMMERCESUBJECT : ORGANISATION OF COMMERCE
STD : XISTD : XI
B.Ed 2010-2011B.Ed 2010-2011
K.J SOMAIYA COMPREHENSIVE COLLEGE OF EDUCATION, TRAINGING &
RESEARCH

2. CONTENTCONTENT
 CONCEPT OF BANKCONCEPT OF BANK
 DIFFERENT TYPES OF BANKSDIFFERENT TYPES OF BANKS
 CENTRAL BANK AND ITS FUNCTIONSCENTRAL BANK AND ITS FUNCTIONS
 COMMERCIAL BANK AND ITSCOMMERCIAL BANK AND ITS
FUNCTIONSFUNCTIONS

3. CONCEPT OF BANKCONCEPT OF BANK
 Derived from the ItalianDerived from the Italian
word “word “BancoBanco”, which”, which
means bench.means bench.
 Used to be called asUsed to be called as
Banco Personal or BancoBanco Personal or Banco
AreasAreas
 Later on, when theLater on, when the
Financial OrganisationFinancial Organisation
started to function thenstarted to function then
the name changed tothe name changed to
BankBank

4. DEFINITION OF BANKDEFINITION OF BANK
 Section 5(C)Section 5(C)
definesdefines
““BankingBanking
Company as anyCompany as any
company whichcompany which
transacts thetransacts the
business ofbusiness of
Banking in India.“Banking in India.“

5. TYPES OF BANKS INTYPES OF BANKS IN
INDIAINDIA
1.1. CENTRAL BANKCENTRAL BANK
2.2. COMMERCIAL BANKSCOMMERCIAL BANKS
3.3. INDUSTRIAL BANKSINDUSTRIAL BANKS
4.4. LAND MORTGAGE ORLAND MORTGAGE OR
AGRICULTURE BANKSAGRICULTURE BANKS
5.5. RURAL BANKSRURAL BANKS
6.6. CO-OPERATIVE BANKSCO-OPERATIVE BANKS
7.7. INTERNATIONAL BANKSINTERNATIONAL BANKS

6. CENTRAL BANK OF INDIACENTRAL BANK OF INDIA

7. COMMERCIAL BANKS INCOMMERCIAL BANKS IN
INDIAINDIA

8. INDUSTRIAL BANKS OFINDUSTRIAL BANKS OF
INDIAINDIA

9. LAND MORTGAGE ORLAND MORTGAGE OR
AGRICULTURAL BANK IN INDIAAGRICULTURAL BANK IN INDIA

10. RURAL BANKS IN INDIARURAL BANKS IN INDIA

11. CO-OPERATIVE BANKS INCO-OPERATIVE BANKS IN
INDIAINDIA

12. INTERNATIONAL BANKS ININTERNATIONAL BANKS IN
INDIAINDIA

13. CENTRAL BANKCENTRAL BANK
 Reserve Bank of India (RBI) is the CentralReserve Bank of India (RBI) is the Central
Bank of India.Bank of India.
 Previously name as Imperial Bank of India.Previously name as Imperial Bank of India.
 It was established on 1It was established on 1stst
April 1935.April 1935.
 Till now Central Bank had 22 Governors sinceTill now Central Bank had 22 Governors since
it establishment.it establishment.
 Mr. Duvvuri Subbarao is the Current GovernorMr. Duvvuri Subbarao is the Current Governor
of RBI.of RBI.

14. FUNCTIONS OF CENTRALFUNCTIONS OF CENTRAL
BANK IN INDIABANK IN INDIA
 Controls the monetary policy of Rupee and US$ ofControls the monetary policy of Rupee and US$ of
Currency Reserve.Currency Reserve.
 Prescribes the Board Parameters of BankingPrescribes the Board Parameters of Banking
Operation for the Banks and the Financial InstitutionOperation for the Banks and the Financial Institution
in India.in India.
 Maintains Public Confidence in the System ProtectMaintains Public Confidence in the System Protect
Depositors Interest.Depositors Interest.
 Provides Cost Effective Banking Services to Public.Provides Cost Effective Banking Services to Public.

15. FUNCTIONS OF CENTRALFUNCTIONS OF CENTRAL
BANK IN INDIABANK IN INDIA
 Issues and Exchanges or Destroys theIssues and Exchanges or Destroys the
Currency and Coins not fit for Circulation.Currency and Coins not fit for Circulation.
 Gives the Public adequate quantity of suppliesGives the Public adequate quantity of supplies
of Currency Notes and Coins in good quality.of Currency Notes and Coins in good quality.
 Maintains Banking A/C’s of all ScheduleMaintains Banking A/C’s of all Schedule
BanksBanks

16. CENTRAL BANKS OFCENTRAL BANKS OF
DIFFERENT COUNTRIESDIFFERENT COUNTRIES
Pakistan China
Unites States of America

17. COMMERCIAL BANKCOMMERCIAL BANK
 It offers services to individuals.It offers services to individuals.
 Primarily concerned with receiving Deposits andPrimarily concerned with receiving Deposits and
lending money to business.lending money to business.
 Commercial Banks are divided into 2Commercial Banks are divided into 2
CategoriesCategories
1.1. State Bank of India and AssociatesState Bank of India and Associates
- State Bank of IndiaState Bank of India
- State Bank of Bikaner and JaipurState Bank of Bikaner and Jaipur
- State Bank of HyderabadState Bank of Hyderabad
- State Bank of IndoreState Bank of Indore

18. COMMERCIAL BANKCOMMERCIAL BANK
 Nationalised BanksNationalised Banks
- IDBI BankIDBI Bank
- Canara BankCanara Bank
- Dena BankDena Bank
- Indian BankIndian Bank

19. PRIMARY FUNCTIONS OFPRIMARY FUNCTIONS OF
COMMERCIAL BANKSCOMMERCIAL BANKS
 Accepting DepositAccepting Deposit
- Current Deposit, Saving Deposit and Fixed DepositCurrent Deposit, Saving Deposit and Fixed Deposit
 Granting Loans and AdvancesGranting Loans and Advances
- Business LoansBusiness Loans
- Car LoanCar Loan
- Home LoanHome Loan
- Personal Loan, Etc.Personal Loan, Etc.
- Cash CreditCash Credit
- Overdraft FacilityOverdraft Facility
- Discounting of BillsDiscounting of Bills

20. SECONDARY FUNCTIONS OFSECONDARY FUNCTIONS OF
COMMERCIAL BANKSCOMMERCIAL BANKS
 Transferring Money from 1 place to another andTransferring Money from 1 place to another and
from 1 branch to another branch of the bank.from 1 branch to another branch of the bank.
 Foreign Exchange Facilities.Foreign Exchange Facilities.
 Undertaking safe custody of valuable important andUndertaking safe custody of valuable important and
security by providing Safe Deposits lockers.security by providing Safe Deposits lockers.
 Issuing Demand Draft (DD) and Pay Orders.Issuing Demand Draft (DD) and Pay Orders.
 Issuing Letters of CreditIssuing Letters of Credit

21.  The term “Bank” has been derived from whichThe term “Bank” has been derived from which
word?word?
Ans :Ans :
- Bank is derived from an Italian word “Banco”.- Bank is derived from an Italian word “Banco”.
QUESTIONSQUESTIONS

22. QUESTIONSQUESTIONS
 Name any 3 types of Banks in India?Name any 3 types of Banks in India?
Ans :Ans :
- Central Bank- Central Bank
- Commercial Bank- Commercial Bank
- Industrial Bank- Industrial Bank
- Land Mortgage or Agriculture Banks- Land Mortgage or Agriculture Banks
- Rural Banks, etc.- Rural Banks, etc.

23. QUESTIONSQUESTIONS
 Who is the current Governor of RBI ?Who is the current Governor of RBI ?
Ans:Ans:
- Mr. Duvvuri SubbaraoMr. Duvvuri Subbarao
 State any one of the Secondary Functions of theState any one of the Secondary Functions of the
Commercial Banks ?Commercial Banks ?
Ans:Ans:
- Issuing Demand Draft (DD) and Pay Orders.Issuing Demand Draft (DD) and Pay Orders.
- Issuing Letters of CreditIssuing Letters of Credit
- Foreign Exchange FacilitiesForeign Exchange Facilities